Homework 7 - Emily Leung Accounting 221 March 28th 2011 TA...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Emily Leung Accounting 221 March 28 th , 2011 TA: L. Martin Homework: 7-2, 7-3, 7-5, 7-7, 7-11, 7-12, 7-18, 7-24 7-2) Nina’s Accounting Service began operation on January 1, 2011. The company experienced the following events for its first year of operations. Events Affecting 2011: 1. Provided $120,000 of accounting services on account. 2. Collected $90,000 cash from accounts receivable. 3. Paid salaries of $24,000 for the year. 4. Adjusted the accounts to reflect management’s expectations that uncollectible accounts expense would be $1,200. Required: a. Prepare general journal entries for the above events Event No. 1 Accounts Receivable Service Revenue 2 Cash Accounts Receivable 3 Salaries Expense Cash 4 Uncollectible Accounts Expense Allowance for Doubtful Accounts b. Post the general journal entries to T-accounts. ASSETS = LIABILITIES + STOCKHOLDE R’S EQUITY (2) 90,000 Bal. 66,000 Service Revenue Uncollectable Accounts Expense (4) 1,200 Accounts Receivable (1) 120,000 (2) 90,000 Bal. 30,000 Salaries Expense (3) 24,000 Allowance for Doubtful Accounts (4) 1,200 Bal. 1,200 c. Prepare an income statement, balance sheet, and state of cash flow for 2011. Income Statement Service Revenue 120,000 Salaries Expense (24,000) Uncollectible Accts. Exp. Net Income 94,800 Statement of Cash Flows Operating Activities Inflow from customers $120,000 Outflow from salaries expense (24,000) Investing Activities 0 Financing Activities 0 Net change in cash 66,000 Plus: Beginning cash balance 0 Ending cash balance 7-3) The following account balances come from the records of Teton Company. Accounts Receivable Allowance for Doubtful Accounts During the accounting period, Teton recorded $12,000 of service revenue on account. The company also wrote off a $150 account receivable. Required: a. Determine the amount of cash collected from receivables. $11,350
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 10/19/2011.

Page1 / 4

Homework 7 - Emily Leung Accounting 221 March 28th 2011 TA...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online